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28 | 28 | | SENATE BILL 324 |
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29 | 29 | | 57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025 |
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30 | 30 | | INTRODUCED BY |
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31 | 31 | | Katy M. Duhigg |
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32 | 32 | | AN ACT |
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33 | 33 | | RELATING TO EMPLOYMENT; PROHIBITING NONDISCLOSURE AND NON- |
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34 | 34 | | DISPARAGEMENT AGREEMENTS; AMENDING A SECTION OF THE NMSA 1978. |
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35 | 35 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: |
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36 | 36 | | SECTION 1. Section 50-4-36 NMSA 1978 (being Laws 2020, |
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37 | 37 | | Chapter 16, Section 1) is amended to read: |
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38 | 38 | | "50-4-36. WORKPLACE SEXUAL ASSAULT, SEXUAL HARASSMENT, |
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39 | 39 | | SEXUAL DISCRIMINATION AND SEXUAL RETALIATION CLAIMS-- |
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40 | 40 | | NONDISCLOSURE AND NON-DISPARAGEMENT AGREEMENTS AND CERTAIN |
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41 | 41 | | ACTIONS PROHIBITED.-- |
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42 | 42 | | A. A private employer shall not, as a term of |
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43 | 43 | | employment, require [an ] a prospective, current or former |
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44 | 44 | | employee or independent contractor to sign a nondisclosure or |
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45 | 45 | | non-disparagement provision of a settlement agreement relating |
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46 | 46 | | to a claim of sexual assault, sexual harassment, sexual |
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47 | 47 | | .229547.4 underscored material = new |
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74 | 74 | | discrimination or sexual retaliation in the workplace brought |
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75 | 75 | | by the prospective, current or former employee or independent |
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76 | 76 | | contractor or prevent the prospective, current or former |
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77 | 77 | | employee or independent contractor from disclosing a claim of |
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78 | 78 | | sexual assault, sexual harassment, sexual discrimination or |
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79 | 79 | | sexual retaliation occurring in the workplace or at a work- |
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80 | 80 | | related event coordinated by or through the employer. |
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81 | 81 | | B. This section does not prohibit a settlement |
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82 | 82 | | agreement [between an ] with a prospective, current or former |
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83 | 83 | | employee or [former employee ] independent contractor alleging |
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84 | 84 | | sexual assault, sexual harassment, sexual discrimination or |
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85 | 85 | | sexual retaliation from containing a confidentiality |
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86 | 86 | | [provisions. A confidentiality provision is permitted when ] |
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87 | 87 | | provision if the provision : |
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88 | 88 | | (1) [it] relates to the monetary amount of a |
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89 | 89 | | settlement; or |
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90 | 90 | | (2) at the prospective, current or former |
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91 | 91 | | employee's or independent contractor's request, [it] prohibits |
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92 | 92 | | disclosure of factual information related to the underlying |
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93 | 93 | | sexual assault, sexual harassment, sexual discrimination or |
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94 | 94 | | sexual retaliation claim or facts that could lead to the |
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95 | 95 | | identification of the prospective, current or former employee |
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96 | 96 | | or independent contractor . |
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97 | 97 | | C. [At the sole request of the employee, a |
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98 | 98 | | settlement agreement subject to this section may contain a |
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99 | 99 | | .229547.4 |
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127 | 127 | | confidentiality provision that prevents the disclosure of |
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128 | 128 | | factual information related to the underlying sexual |
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129 | 129 | | harassment, discrimination or retaliation claim. ] The |
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130 | 130 | | provisions of this [subsection ] section shall not be construed |
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131 | 131 | | to prevent disclosure of information that is the subject of the |
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132 | 132 | | confidentiality provision if disclosure is required to be made |
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133 | 133 | | in a judicial, administrative or other governmental proceeding |
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134 | 134 | | pursuant to a valid subpoena or other applicable order as |
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135 | 135 | | otherwise required by law. |
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136 | 136 | | D. Except as provided in [Subsections B and ] |
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137 | 137 | | Subsection C of this section, a confidentiality provision in a |
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138 | 138 | | settlement agreement subject to this section is void and |
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139 | 139 | | unenforceable as a matter of law. |
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140 | 140 | | E. In any civil action involving a claim of sexual |
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141 | 141 | | assault, sexual harassment, sexual discrimination or sexual |
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142 | 142 | | retaliation, a plaintiff may present evidence that the employer |
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143 | 143 | | against whom the action was filed entered into one or more |
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144 | 144 | | agreements that included a nondisclosure or non-disparagement |
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145 | 145 | | clause involving the conduct of the same individual or |
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146 | 146 | | individuals who are alleged to have engaged in the unlawful |
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147 | 147 | | acts. Such evidence may be used in support of an award of |
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148 | 148 | | punitive damages. |
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149 | 149 | | F. With respect to a claim of sexual assault, |
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150 | 150 | | sexual harassment, sexual discrimination or sexual retaliation |
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151 | 151 | | in the workplace, any nondisclosure clause or non-disparagement |
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152 | 152 | | .229547.4 |
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180 | 180 | | clause agreed to before the dispute arises shall not be |
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181 | 181 | | judicially enforceable in instances in which conduct is alleged |
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182 | 182 | | to have violated federal, tribal or state law. |
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183 | 183 | | G. Notwithstanding any other provision of this |
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184 | 184 | | section, at the election of the person alleging conduct |
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185 | 185 | | constituting a sexual assault, sexual harassment, sexual |
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186 | 186 | | discrimination or sexual retaliation dispute, or the named |
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187 | 187 | | representative of a class or in a collective action alleging |
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188 | 188 | | such conduct, no predispute arbitration agreement or predispute |
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189 | 189 | | joint-action waiver shall be valid or enforceable with respect |
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190 | 190 | | to a case that is filed under federal, tribal or state law and |
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191 | 191 | | relates to the alleged sexual assault, sexual harassment, |
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192 | 192 | | sexual discrimination or sexual retaliation dispute. |
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193 | 193 | | H. The provisions of this section are to be |
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194 | 194 | | liberally construed to fulfill their remedial purpose. " |
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195 | 195 | | SECTION 2. APPLICABILITY.--The provisions of this act |
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196 | 196 | | apply to agreements entered into between a private employer and |
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197 | 197 | | a prospective, current or former employee or independent |
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198 | 198 | | contractor on or after June 20, 2025. |
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199 | 199 | | - 4 - |
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200 | 200 | | .229547.4 |
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